Land Secs sells One Wood Street for EUR 122m

UK REIT Land Securities has exchanged contracts for the leasehold sale of One Wood Street in London to the fund manager Aerium on behalf of the Glenn Arrow UK Property Fund for £105.5 mln (EUR 122 mln).

Completed in 2007, the building provides 15,020 m² of offices let to Eversheds Properties and 1,500 m² of fully let retail accommodation at a total rent of £8.4 mln per annum. The property is held on a long lease from The City Parochial Foundation for a remaining term of 156 years, at a ground rent geared to 10.85% of rental income.

There is an additional income of £3.4 mln per annum from Citigroup until December 2010 which will be retained by Land Securities.

Commenting on the sale, Richard Linnell, head of Investment Management for Land Securities' London Portfolio, said: 'This sale demonstrates the growing investor interest in good quality assets. Developed in 2007, this property is of the highest quality and sets a new benchmark in environmental credentials. The quality of the building and the strength of the income stream has enabled us to achieve an excellent investment result.'